Business Services Industry
DataWorld Solutions Restructures Balance Sheet Eliminating Over $2 Million in Debt; Creditors Convert Debt to Equity at Substantial Premium to Price of Company's Common Stock
Business Wire, June 8, 2004
Business Editors/High-Tech Writers
HAUPPAUGE, N.Y.--(BUSINESS WIRE)--June 8, 2004
DataWorld Solutions, Inc. (OTCBB:DWLD) announced today that it has executed a series of agreements that will reduce its overall indebtedness by over $2 million. The agreements, which are part of the Company's continued initiatives to improve its balance sheet, will result in the exchange of $2.3 million in debt and other liabilities in return for a $250,000 note and restricted shares of the Company's common stock valued at $1.75 per share. This represents a premium in excess of 300 percent to the current market price of the Company's common stock. DataWorld's common stock closed Monday at $0.40 per share. The Company is continuing negotiations with other creditors to further reduce its indebtedness.
"We have worked hard over the past six months to improve our balance sheet, bring our public reporting requirements up to date to obtain a listing on the Over-the-Counter Bulletin Board and to build our security and defense business," said Daniel McPhee, the Company's President. "The conversion by our creditors of debt to equity at a significant premium to the price of our common stock reflects their confidence in our future prospects. We believe that the combination of robust business prospects and a strengthened financial condition will play an important role in delivering long-term, sustainable value for shareholders."
About DataWorld Solutions, Inc.
DataWorld Solutions, Inc. is a multi-regional manufacturer of electronic cable assemblies used in providing connectivity solutions for customers operating a wide range of data systems to include linking or connecting standard or proprietary electronic devices and peripheral components from different vendors to provide solutions for various customer equipment configurations and requirements. DataWorld adds value by providing connectivity solutions, which may include distributed sales for passive components such as electronic connectors, electronic wire and cable, cabinets and racks and patch panels, and active components including hubs, bridges, routers, gateways and modems. DataWorld encourages customers to discuss their unique cabling requirements with its experienced sales/marketing support team so that cost-effective solutions can be provided for customer specific needs.
About DWS Defense Systems, Inc.
DWS Defense Systems, Inc., a wholly owned subsidiary of DataWorld Solutions, Inc., was created in response to the growing security concerns expressed by the clients of DataWorld. In reaction to acts of domestic and international terrorism, businesses are searching for better ways to protect their buildings, and more importantly, to better protect the people who work in or visit these locations. DWS will offer one such solution -- high quality, state of the art safety/security glass product applications and associated security systems. The highly skilled DWS Defense Systems team working in collaboration with its partners will design, develop, manufacture, install and market specialty products, equipment, and systems for the safety and security needs of all sectors of the domestic and international marketplace.
Except for historical matter, the matters in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements reflect assumptions, and involve risks and uncertainties, which might affect DataWorld's business and prospects and cause actual results to differ materially from these forward-looking statements, which are detailed in DataWorld's public filings with the SEC.
For more information on DataWorld Solutions, Inc. visit: www.dwsdefense.com and www.dataworlddirect.com.
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